Abstract According to the characteristic of manufacturing industry, a conceptual framework is developed incorporating supply chain relationship, collaboration, and supply chain performance. Six elements of supply chain relationship are surveyed include trust, communication, commitment, adaptation, interdependence, and co-operation. Supply chain collaboration is evaluated by information sharing, decision synchronization, and incentive alignment. Supply chain performance is measured by delivery, inventory cost, and flexibility. Structural Equation Modeling is used to test the impact of supply chain relationship on collaboration and supply chain performance, with data collected from 163 manufacturing firms. The results show that supply chain relationship exhibits a strong positive effect on collaboration, and supply chain relationship and collaboration have a positive effect on supply chain performance.
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